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Question 3

Taleb Cars Ltd. issued 5,000 shares of $ 15 each at a premium of $ 5 per share, payable as:

On application $ 6 (including $ 2 premium) per share

On allotment $ 14 (including $ 3 premium) per share

Applications were received for 5,000 shares and allotment was made to all.

The journal entries of application are.

	A.	Particulares Dr Cr Particulares Dr Cr Bank A/c Share Capital A/c Securities Premium A/c (Amount received for 5,000 shares) 30,000 20,000 10,000 Share Application A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium 30,000 20,000 10,000
	B.	Particulares Dr Cr Particulares Dr Cr Bank A/c Share Capital A/c Securities Premium A/c (Amount received for 5,000 shares) 30,000 20,000 10,000 Application A/c Securities Premium A/C Share Capital A/ (Share application money& securities Premium transferred to share capital 20,000 10,000 30,000
	C.	Particulares Dr Cr Particulares Dr Cr Application A/c Share Capital A/c (Amount received for 5,000 shares) 30,000 30,000 Bank A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium 30,000 20,000 10,000
	D.	Particulares Dr Cr Particulares Dr Cr Bank A/c Share Application A/c (Amount received for 5,000 shares) 30,000 30,000 Share Application A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium 30,000 20,000 10,000

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